CA Budget Includes Senator Susan Rubio’s Young Child Tax Credit Expansion

July 1, 2022

SACRAMENTO, CA – California Governor Gavin Newsom has signed a series of budget bills this week that included a proposal by Senator Susan Rubio (D-Baldwin Park) to expand the eligibility for the Young Child Tax Credit and adjusts the credit for inflation to help struggling families and reduce poverty

Earlier this year, Senator Rubio introduced Senate Bill 860, which expanded the eligibility for the credit from $1 earning to $0 to include in-home caregivers without paid work. Senator Rubio introduced a similar bill, SB 691, the year prior. Since the introduction of the bill, SB 860 has become a priority for the Governor and the California Latino Legislative Caucus. This policy proposal has now been included in the 2022-23 state budget with additional protections to prevent debt interception for California Earned Income Tax Credit recipients. According to the Department of Finance, approximately 55,000 more families could now be eligible for the credit.

“The young child tax credit is one of the most effective tools for reducing poverty and supporting struggling families,” said Senator Rubio. “As someone who has dedicated herself to the development of children, we know that poverty can set them up for a lifetime of struggles. Removing this unnecessary work requirement allows for an equitable distribution of financial resources to those who need it the most. Children should never go hungry or lack basic necessities. I thank Governor Newsom for prioritizing this issue and ensuring struggling families receive the support they need.”

“We are very grateful for Senator Rubio's tireless leadership on behalf of California's low-income families. This victory would not be possible without her dedication to this vital expansion,” said Amy Everitt, President of Golden State Opportunity. “Now, hardworking parents of young children will have support no matter what they earn.”

“This expansion to the YCTC will help families with young children cover the costs of basic necessities like childcare, rent, and food. We are thrilled to see caregivers get recognition and financial support for the essential but unpaid work they do, day in and day out,” said Pete Manzo, President and CEO of United Ways of California. “As a proven tool for poverty reduction, the Young Child Tax Credit will bolster greater equity and inclusion for all low income families with young children in California. We thank Senator Rubio, the Legislature, and the Governor for putting families and children first.”

“The removal of the earning requirement from the YCTC and the protection against debt interceptions will finally allow cash to flow to the families and children that stand to benefit the most from the tax credit,” said Shimica Gaskins, President and CEO at GRACE - End Child Poverty California. “The change to the YCTC recognizes and honors the necessary work of our unpaid caretakers that have been unfairly excluded by our economy and tax credit system. Unpaid household and care work are important contributors to economic activity and ensure the well-being of our families and children. In addition, protection against debt interception, which disproportionately impacts poor, BIPOC individuals, will allow our tax credits to reach its rightful recipients. We applaud the Governor and the Legislature for getting rid of the barriers that prevented our communities from getting the cash that allows them to do what is best for their families.”

According to The Real Cost Measure in California 2021 report, over half of families with children under six in California struggle financially, and nearly one in three California households—over 3.5 million families (33%)— do not earn sufficient income to meet basic needs.

This policy proposal to expand the YCTC eligibility to households with no-earned income received bipartisan support in the Legislature.

Senator Susan Rubio represents Senate District 22. For more information, visit


Media Contact: Edward Barrera,